No Balance Transfer Fee – Is It a Good Deal?
A no balance transfer fee credit card offers you an easy way to quickly transfer existing credit card debt to another card without additional charges. Depending on the new card you acquire, certain balance transfer charges may apply. It’s important to read all terms and conditions of any credit card offer that comes your way before you make a decision to apply for a card. With a little research you can find a no balance transfer fee credit card that suits your individual needs and offers a low interest rate. You should do some comparison shopping and understand all of the conditions of any card offer to ensure you are getting the best deal.
One type of no balance transfer fee credit card is the introductory low interest rate card. These cards have a low interest rate for a limited time period. The good thing about these introductory rates is that you can save money in the long term because your interest rate won’t increase until your introductory period is over. During this time you will also be able to pay off your outstanding balances much faster because you won’t be paying any extra interest. If you want to use these cards responsibly you will want to only keep your balance as low as possible because once your interest rate begins to rise again you will have to pay the higher amount rather than having a lower amount to pay off each month.
Balance transfer cards with no annual fee can also provide a good way to get started rebuilding your credit. These cards offer the convenience of transferring your debt between accounts so that you have one monthly payment instead of several. But there is a downside: you end up paying off your debt more quickly which will cost you more money in the long run. With a high interest rate, it may not be affordable to pay your debt off in less than five years; therefore, you will need to use balance transfer cards wisely.
Balance transfer cards with no balance transfer fee provide another alternative for people who have no credit or no money to put down for their credit cards. These cards usually offer the same benefits that high-interest cards offer; balance transfers, lower payments, rewards programs, and similar things. Some no fee balance transfer credit cards even give incentives such as cash back, gas credits, and airline miles.
Most introductory offers only last for a limited period of time. For the most part, you must act quickly to take advantage of the no balance transfer fee and the benefits of the introductory offers. This means that you should pay your entire bill each month after the introductory period has ended in order to benefit from the rewards program. This does make sense, because the longer it takes you to pay off your debt, the less money you will gain in the long run. In many cases, these cards actually have a higher APR than the cards without this option.
Balance transfer credit cards offer great convenience. They can save you hundreds of dollars per month, if you are disciplined enough to pay your bills on time. Unfortunately, there is a catch: If you don’t pay off your debt in a reasonable amount of time, you may actually end up paying more in interest charges than you would have paid in the first place. Most credit cards charge an introductory interest rate of anywhere from twelve to twenty percent. If you owe ten thousand dollars, and you are able to pay your debt off in half the usual time frame (eighteen to thirty-six months), you could end up saving five thousand dollars in interest charges.
You should take the time to research the best balance transfer cards, as well as the lowest introductory APR. The best cards are those with the lowest interest rates and lowest ongoing fees and charges. The lowest interest rates will usually be the longest, and the longest interest periods will usually be the shortest. In other words, you need to compare the introductory APR to your credit limit, your monthly payment amount, your minimum payment amount, your annual fee, and your maximum credit line. You also need to make sure you can pay off your debt in the specified time period, as well as meet any other financial obligations. You also want to make sure that you have enough credit to cover the full amount of your balance if you should need to make a claim against your card.
It is important to remember that balance transfers do not have any additional fees or charges. The one time set up fee and the one-time payment requirement are the only two that can come with it. Balance transfers offer instant convenience and a high level of flexibility at a lower cost. They can make your life a lot easier.